aegean airlines company presentation april 2008 · 2008-05-09 · aegean airlines company...
Post on 17-Jun-2020
0 Views
Preview:
TRANSCRIPT
Aegean AirlinesCompany Presentation
Eftichios Vassilakis, Executive Vice ChairmanApril 2008
2
Agenda
Aegean Airlines at a glance
Financial & operating update
Our strategic focus
Appendix
3
Fastest growing Greek carrier
Full Service Carrier since 1999 - Listed in July 2007
Leader in Domestic Market - Developing International presence
5.2 million passengers in 2007
40 routes to 29 destinations in Greece and abroad (Summer 2008)
1,900 employees
27 aircraft (Summer 2008)
Pre-tax earnings profitable since 2003 – 3-year revenue CAGR 19%
Scheduled flights
85%
10%
5%Charterflights
Other
3,576,628
4,002,451
4,447,570
5,226,163
2004
2005
2006
2007
CAGR = 13%
Revenue breakdown (2007)*
Passengers
* Excluding airport charges
4
Domestic network
Covering 98% of potential demand
Operating 23 routes, reaching 17 destinations (Summer 2008)
Carrying 3.4m pax in 2007 (+10% y-o-y)
Market Share (passenger and revenue) in excess of 50%
RHODES
CHANIA
ALEXANDROUPOLISTHESSALONIKI
ATHENS
HERAKLION
KERKYRA
KAVALA
IOANNINA
SAMOS
CHIOS
KOS
MYKONOS
SANTORINI
MYTILINI
Opened in 2008
LIMNOS
KEFALONIA
5
International networkOperating 17 routes, 12 destinations on 9 countries (Summer 2008)
Covering 8 out of 15 most popular destinations out of Athens
Carrying 1.9m pax in 2007 (+35% y-o-y )
Leader out of Thessaloniki
Expanding Share out of Athens (2nd position)
Code share agreements with Lufthansa, Air One, Tap Portugal
62
4
6
3
4
3
3
3
3
4
4
4
3
# Operators
2
1
1
1
1
1
1
3
2
2
2
2
3
y-t-dAEGEAN
market rank
2001DUSSELDORF/COLOGNE/DORTMUND
2001MUNICH
2001FRANKFURTSKG
2004LARNACA
2001STUTTGART
2006SOFIA
2006BUCHAREST
2006CAIRO
2004LARNACA
2003MILANO
2001ROME
2007MUNICH
2007FRANKFURTATH
Market shareTrend
AEGEAN Start
Route
Competitive Update (Jan - Mar 2008)
Alitalia de-hubs Malpensa
Albanian Airlines drop Athens-Tirana
Tarom reduces frequencies to Bucharest
7
Focus on quality services
First to introduce Business Class in domestic market
Loyalty programme: Miles&Bonusalmost 10% of A3 passengers in 2007
E-services / web check in: Largest e-commerce player by revenue in Greece
Self check in kiosks
5 times awarded by ERA
9%
20%
30%
2005 2006 2007
% of web bookings
8
5%
10%
15%
20%
25%
30%
2002 2003 2004 2005 2006 2007
Mar
ket s
hare
by
Pax
Strong brand and market position
3%Singapore
4%Emirates
11%Lufthansa
21%Olympic Airlines
46%Aegean Airlines
10%
20%
30%
40%
50%
2002 2003 2004 2005 2006 2007
Mar
ket
shar
e by
Pax
Athens Airport Survey Favorite airline for Greek residents
Choice = Market Share X 2
Source: AIA, CAA, Press reports & Company estimates
Aegean at AIANumber 2 carrier
Aegean at ThessalonikiNumber 1 carrier
9
Lufthansa’s regional partner
Cooperation since 2005
Link generates additional passenger traffic from/to Lufthansa’s network, especially business traffic
Increased brand awareness in Germany
Linked loyalty programs: miles earned in both carriers
Improved connectivity from coordinated schedules
Athens
Paris
Brussels
Amsterdam
Berlin
Hamburg
Munich
Düsseldorf
Thessaloniki
Hannover
Stuttgart
Frankfurt
10
Agenda
Aegean Airlines at a glance
Financial & operating update
Our strategic focus
Appendix
11
Financials
167.516.5Total equity
57.556.7Debt
158.324.4Cash
20072006
39%35.825.7 Net income
30%44.634.4 EBT
19%83.169.9 EBITDAR
20%482.7 401.1 Revenue
07 vs 0620072006Euro (million)Sales (€ million)
283.5
340.6
401.1
482.7
2004
2005
2006
2007
CAGR = 19%
EBITDAR (€ million)
34.0
53.2
69.9
83.1
2004
2005
2006
2007
CAGR = 35%
Net earnings (€ million)
-3.6
13.5
25.7
35.8
2004
2005
2006
2007
CAGR = n/a
12
Sector comparison
-4%Austrian Airlines
-1%BA
3%Iberia
4%Air France
11%Easyjet
15%Aer Lingus
20%Aegean
23%Ryanair
28%SkyEurope
44%NAS
54%Vueling
Revenue growth
-12%Vueling
-9%SkyEurope
0%Austrian Airlines
2%NAS
6%Air France
6%BA
6%Iberia
7%Aegean
8%Easyjet
8%Aer Lingus
20%Ryanair
Net margin
3%Vueling
3%SkyEurope
12%NAS
15%Austrian Airlines
16%Air France
16%Aer Lingus
17%Easyjet
17%Iberia
17%Aegean
19%BA
29%Ryanair
EBITDAR margin
Source: Aegean Airlines, Company data, Results for the 12-months to Dec 2007 with the exception of Vueling (9-month 2007) & easyJet (12-month to Sept 07)
13
1Q 2008 traffic
4%9288Pax / Flight
6%11,60110,917Total Flights
10%1,062,202965,634Total passengers
35%356,719265,047International passengers
1%705,483700,587Domestic passengers
08 vs 071Q 20081Q 2007
14
Agenda
Aegean Airlines at a glance
Financial & operating update
Our strategic focus
Appendix
15
Investment in new aircraftDelivery of 27 new aircraft over the 2007-2010 period – $1.2 bn in leased and purchased aircraft = largest private investment in transportation in Greece
Retirement of Boeing fleet (15 aircraft over the Q4:2007 - Q1:2009 period)
Image benefits / Business Class potential
Cost savings (maintenance, fuel)
Higher average capacity per A/C
Homogeneity
Reliability/Productivity/On Time performance
Higher capital Costs
Transition Costs/Inefficiencies
Boeing underutilization in 2008-2009 Crew training
Benefits Costs
Aegean representative cost structure as of Q2: 2009
16
Our Fleet
2Avro re-delivery
84 + 21Boeing re-deliveries
68103A320/321 deliveries
2010200920082007
30.528.326.423.4Total30-3127-282724Fleet at peak period
0.02.511.114.9Boeing 737/300-400
5.06.06.06.0Avros
4.03.51.40.0A 321
21.516.27.92.5A 320
2010200920082007Average fleet size
17
Average fleet age
10.4 10.0
8.0
4.0
2.0
0.0
4.0
8.0
12.0
2006
2007
2008
E
2009
E
2010
E
Yea
rs
18
Our Network Expansion Strategy
New W. European route: Athens-London
2940Total
2 new destinations: Limnos, Kefalonia, now covering98% of potential demand1723Domestic
Network
New regional route: Athens-Tirana1217International
Network
DestinationsRoutes
Target W.European & regional marketsExpansion criteria/priorities
Destinations within 4-hour flight radiusBalance of traffic originating in GreeceHigh share of point-to-point trafficSlots availability
2008 Summer schedule consistent with stated strategy
19
Closing remarks
Our strengths / opportunities
Leading domestic position and increasing international market significance
Profitable since 2003, without new aircraft
Fleet investment benefits gradually by Q2 2009: image, fuel costs, maintenance costs, utilization, average capacity per aircraft, specification commonality
Rising web penetration, commission reductions, distribution efficiencies
Organizational maturity / Revenue Management Team / System Implementation
0ur challenges
Fuel price evolution
Fleet Transition Q4 2007 - Q1 2009
International routes expansion risks
20
Appendix
Recent results
Our network
Shareholders structure
21
2007 operating review
More flights, longer distances & market share gains in a growing market
577
582
588
639
2004
2005
2006
2007
11.8 12.2 13.6 14.3 15.1 16.5
14% 17%20% 22% 23% 25%
68
10121416182022
2002 2003 2004 2005 2006 2007-3%2%7%12%17%22%27%32%
2.422.85
3.584.01
4.455.23
2002 2003 2004 2005 2006 2007
Average Segment Length (km) Number of flights*
A3 Total pax (m)AIA Pax (m) & A3 market share (%)
46,150
45,377
47,979
54,708
2004
2005
2006
2007
*Excl non revenue flights
22
2007 review: P&L Highlights
39%35.825.7 Net income
30%44.634.4 EBT
1pp7.4%6.4%Net income margin
7%42.940.0 EBIT
-0.2pp17.2%17.4%EBITDAR margin
19%83.169.9 EBITDAR
20%482.7 401.1 Revenue
07 vs 0620072006Euro (million)
23
2007 review: Balance Sheet
46.539.7Other fixed assets
77.832.1Advances for A/C acquisition
353.2166.8Total Liabilities & Equity
128.293.6Other Liabilities*
57.556.7Debt
167.516.5Total equity
353.2166.8Total Assets
70.570.6Other current assets
158.324.4Cash and cash equivalents
124.371.8Total fixed assets
Dec-07Dec-06Euro (million)
* Includes derivative financial instruments liabilities of €31.2m in 2007 vs. €12.6m in 2006
24
2007 review: Key Performance Indicators
-4.1%13.414.0Yield (€ cents)
-5.9%8.69.1CASK - EBT level (€ cents)
-5.0%7.88.2CASK - EBITDAR level (€ cents)
4.4%78.975.6Average Fare (€)
-5.2%9.410.0RASK (€ cents)
+3 pax9693Avg Pax/flight
-1.2pp69.2%70.4%Load Factor (Pax/AVS) – Scheduled
-2.3pp69.5%71.8%Load Factor (RPK/ASK) – Scheduled
07 vs 0620072006
25
Our network (Summer 2008)Covering 8 out of 15 most popular international destinations from Athens
Cairo15
Bucharest14
Istanbul13
Brussels12
Madrid11
New York10
Zurich9
Amsterdam8
Munich7
Rome6
Frankfurt5
Milan4
Paris3
Larnaca2
London1
Top 15 International Destinations from
AIA
Athens-Mytilini12
Thessaloniki-Santorini23Athens-Myconos11
Thessaloniki-Rhodes22Athens-Limnos10
Thessaloniki-Mytilini21Athens-Kos9
Thessaloniki-Mykonos20Athens-Kefalonia8
Thessaloniki-Kos19Athens-Kavala7
Thessaloniki-Heraklion18Athens-Ioannina6
Thessaloniki-Chania17Athens-Heraklion5
Athens-Thessaloniki16Athens-Corfu4
Athens-Santorini15Athens-Chios3
Athens-Samos14Athens-Chania2
Athens-Rhodes13Athens-Alexandroupolis1
Domestic Routes
Thessaloniki-Stuttgart17
Thessaloniki-Munich16
Thessaloniki-Larnaca15
Thessaloniki-Frankfurt14
Thessaloniki-Dusseldorf13
Rhodes-Larnaca12
Heraklion-Larnaca11
Athens-Tirana10
Athens-Sofia9
Athens-Rome8
Athens-Munich7
Athens-Milan6
Athens-London5
Athens-Larnaca4
Athens-Frankfurt3
Athens-Cairo2
Athens-Bucharest1
International Routes
26
Shareholders structure
Vassilakis Group33.9%
Laskarides Group19.0%
D. Ioannou6.1%
Osiris4.7%
Piraeus Bank4.7%
Free Float25.4%
Cantel Participations
6.2%
27
Thank you
For further information on AEGEAN please visit our website at
www.ageanair.com or contact our Investor Relations Manager
Stella Dimarakiinvestors@aegeanair.com
+30 210 6261972
28
Forward Looking Statements
Except for historical information, the statements made or information contained in this presentation are forward-looking in nature and, as such, are subject to certain risks and uncertainties, many of which are beyond the Company’s control, which could cause the actual results to differ materially from those referenced, projected or contemplated herein by any forward-looking statement, including but not limited to the following: overall passenger traffic; the airline ticket pricing environment; the international expansion of our route network; seasonal fluctuations in passenger travel; aviation fuel prices; landing and navigation fee changes; changes in aircraft acquisition, leasing and other operating expenses; developments in government regulations and labour relations; the cost of our ground handling operations; the future development of AIA; foreign currency fluctuations, in particular between the euro and the U.S. dollar; the progress of our code-shared and interline arrangements; our ability to finance our planned acquisition of aircraft and to discharge any resulting debt service obligations; the availability of additional slots or landing rights at existing airports and the availability of new airports for expansion; interest rate fluctuations; extraordinary events, such as accidents, terrorist attacks or threats of terrorist attacks, natural disasters and outbreaks of contagious diseases; the rates of taxes payable; and general economic conditions in Greece and the European Union. Additional risks are discussed in the Offering Memorandum and the Company’s filings with the Capital Markets Commission and the Athens Exchange.Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. The forward-looking statements are made as of the date of this presentation, and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
top related